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| Israel Dead Sea mineral extraction |
New Legislation to Increase State Revenue
Israel proposes a draft law to increase state revenues from Dead Sea mineral extraction. The Finance Ministry seeks to ensure public and state benefits while protecting the environment. Meanwhile, the law will redefine concessions, lower entry barriers, and attract global mining companies. ICL Group, holding the current concession, may participate in future tenders.
Dead Sea Mineral Concession and ICL Group
ICL Group has held exclusive extraction rights for potash and magnesium for fifty years. However, its permit expires in 2030. The law proposes raising the state’s share of profits from 35% to an average of 50% via royalties. In addition, it emphasizes fair allocation and sustainable practices to mitigate environmental impacts.
Market and Environmental Implications
The draft law could stimulate competition in the global potash and magnesium market. As a result, Israel may attract leading international players. Meanwhile, authorities aim to preserve the Dead Sea ecosystem while maximizing economic returns. Therefore, the legislation balances fiscal gains with environmental stewardship.
ScrapInsight Commentary
Israel’s draft law signals a strategic move to secure higher revenues from critical minerals while promoting responsible extraction. Potash and magnesium markets may see increased global competition. Environmental regulations will influence long-term resource sustainability and investment attractiveness.
